Bringing New Meaning to The Phrase "Golden Parachute"
| Fri Sep. 26, 2008 9:31 AM PDT
From the New York Times article on the largest bank collapse in American history:
But the seizure and the deal with JPMorgan came as a shock to Washington Mutual's board, which was kept completely in the dark: the company's new chief executive, Alan H. Fishman, was in midair, flying from New York to Seattle at the time the deal was finally brokered, according to people briefed on the situation. Mr. Fishman, who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus, according to an analysis by James F. Reda and Associates.
That's right. The chief executive of WaMu is getting $19.1 million for three weeks of work. Natch. And these are the people taxpayers are supposed to be bailing out?
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Comments
If this was a fair world, we'd take the investment and mortgage bankers, their 'regulators', along with the politicians who voted for Gramm Leach, and send them all to Alaska to work in a camp close to the Arctic circle digging latrines for pipeline workers.
Oh, wait a minute, that would almost de-nude Washington. But perhaps that is what we need. In retrospect, I don't think the Marxist call to overthrow the capitalist class is that far off or 'inappropriate' in this deeply crooked country.
I work for WaMu Card Services. The rumor is we'll be losing our jobs in about 6 months once JPM takes our portfolio of credit card customers. Severance payout may not happen even though I have 11 years of employment. Loss of stock, loss of a job, loss of a severance (hopefully not) and this guy is going to walk away with about $18Mil!
The previous CEO (Killinger)walked away with $23Million just three weeks prior. You'd think they would just have let him keep his job for 3 more weeks so we wouldn't have to pay the new guy $6 Million for each week he was employed.
MJ -
Don't forget about all the Executive Presidents, VP's, etc. in all the other divisions (Homeloans, Retail, Credit Cards...)that will also walk away with millions. Glad to see the rich getting taken care of so well.
So let's see, they'll let go of all the employees where there is overlap (5k in Seattle, 5k in SF area, guaranteed!) that are now forced to seek new jobs in an industry that is not stable and has low employment rates, while also trying to get the job before your former co-worker snags it. Thanks to the FDIC for shutting us down rather then let us seek additional capital.
p.s. A special thanks to all the idiot customers that made a run on the bank even though you're insured up to $100k. I appreciate that you bought into fear for no reason and helped the company collapse. Maybe I can come and sleep on your couch and use the pillow case you stuffed with cash to rest my head.
The people involved are really stupid. They should have made the title of the job where you clean toilets, wash windows and floors, the title he held when he hired. Then they should have made him do those menial jobs. Then, with much time "in the pits" like more normal people he probably would have quit on his own and much of the payout would have saved.
